Rental prices rise across Belgium as gap between housing supply and demand rises
The private rental market is slowing down across Belgium due to a lack of housing supply, according to a study by real estate federations CIB and Federia. Brussels and the surrounding provinces remain the most expensive places in the country to rent.
In spring 2024, there were 20,600 new rental contracts signed in Flanders, a drop of more than 35 per cent compared to spring 2023. In Brussels, there was a fall of 23 per cent, with Federia noting a similar fall in Wallonia.
“Until 2023, we reaped the benefits of a long period of low interest rates,” says CIB spokesperson Kristophe Thijs.
That boom ended in 2023, as rising interest rates deterred investors and new construction and conversion projects slowed down, partly due to the increasing cost of materials and personnel.
"Brussels is particularly vulnerable because opportunities for supply expansion in an urban context are not there"
“The inflow of supply is falling. This is worrying as the gap between supply and demand for rental properties continues to widen,” says Thijs.
“Brussels is particularly vulnerable because opportunities for supply expansion in an urban context are not there. Moreover, the biggest challenge for Brussels is to make the investment climate more attractive. In recent years, steps backwards rather than forwards have been taken in this respect.”
In Wallonia, a number of players in the property sector have called on the new regional government to address the fall in housing affordability. The sector says it is waiting for “concrete, strong and rapid” measures, such as a reduction in registration fees, to “prevent a new housing crisis”.
Average rents
The federations’ rental barometers also looked at average rents around the country. Woluwe-Saint-Pierre is the most expensive place in Brussels to rent a home, with an average of 1,542 euros a month. Ixelles and Uccle follow with averages of around 1,350 euros.
Only Jette, Laeken, Anderlecht and Ganshoren have average rents of less than 1,000 euros. Ganshoren has the lowest average cost, at 923 euros.
"The inflow of supply is falling. This is worrying as the gap between supply and demand for rental properties continues to widen"
In Flanders, Flemish Brabant remains the most expensive province to rent. The average rent there is 1,111 euros.
Among Flemish cities, Leuven is the most expensive and saw the largest price increase since the last barometer. The average price for a flat in central Leuven this spring was 1,158 euros. Antwerp remains in second place, with an average above 1,000 euros. Mechelen and Ghent are approaching that mark and may reach it this autumn.
Walloon Brabant remains the most expensive province in Wallonia, at 1,094 euros, compared with rents of between 762 and 800 euros in the region’s other provinces.
© PHOTO BELPRESS
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